World Defense

Germany Approves €4.3 Billion For HX-2 and Virtus Strike Drone Procurement Under Strict Conditions

Germany Approves €4.3 Billion For HX-2 and Virtus Strike Drone Procurement Under Strict Conditions

BERLIN, February 25, 2026 : The Budget Committee of the German Bundestag has approved two framework agreements with a combined ceiling of approximately €4.3 billion for the procurement of loitering munitions for the Bundeswehr, introducing strict financial and procedural conditions before the full amount can be accessed. The approval followed prior clearance from the Defence Committee earlier the same day, with Reuters and dpa reporting the decision in the afternoon.

The framework agreements cover the acquisition of the HX-2 loitering munition produced by Helsing and the Virtus loitering munition manufactured by STARK Defence. Each company will receive a separate framework contract under the arrangement.

 

Initial €270 Million Tranche Authorized

Under the first firm order placed within the framework, the Bundeswehr will procure systems worth approximately €270 million. This initial tranche includes 4,300 HX-2 loitering munitions from Helsing and 2,200 Virtus loitering munitions from STARK Defence.

Serial deliveries may commence only after both systems successfully complete formal acceptance trials and verification procedures. The committee stipulated that any additional orders or the exercising of contract options beyond the initial tranche will require separate, subsequent approval from the Budget Committee.

 

Financial Structure and Conditional Caps

Although the overall framework is valued at €4.3 billion, the Budget Committee has imposed an initial call-off limit of €1 billion per supplier. Access to the remaining funds within the original ceiling will require the Federal Ministry of Defence to submit additional documentation, including a formal justification of operational need, a comprehensive market analysis, a detailed price examination, and verified proof of system performance.

The structure maintains the availability of the full €4.3 billion amount over the contract’s seven-year term but links further disbursements to parliamentary oversight and additional evaluation.

Originally, the framework agreement with STARK Defence had been planned at nearly €3 billion, while the agreement with Helsing was structured at approximately €1.3 billion. Despite the differing financial allocations, the contractual design allows for a comparable number of loitering munitions to be called up from each supplier over time.

 

Technical Characteristics of the Systems

The HX-2 loitering munition developed by Helsing is an electrically powered X-wing system with a take-off weight of approximately 12 kilograms. It has a stated operational range of up to 100 kilometres and a maximum speed of 220 kilometres per hour. The system incorporates onboard artificial intelligence capabilities and supports multiple payload configurations, including anti-tank and anti-structure warheads.

The Virtus loitering munition produced by STARK Defence is described as a software-defined system equipped with German-designed warheads. It supports modular payload configurations and is designed for integration into network-enabled operational frameworks.

 

Operational Integration and Deployment

Loitering munitions, often referred to as strike drones, have become a standard component of modern military operations. The Bundeswehr intends to integrate the newly procured systems into operational units, with the 45th Armoured Brigade designated as the first major formation to be equipped.

The brigade is permanently stationed in Lithuania and forms part of Germany’s forward-deployed presence in Eastern Europe.

 

Rheinmetall’s FV-014 Under Consideration

The original procurement plan envisaged the simultaneous acquisition of three loitering munition systems. However, the third system, the FV-014 strike drone manufactured by Rheinmetall, was temporarily delayed pending an additional demonstration to confirm system maturity.

According to available information, the required demonstration was successfully completed several days before the Budget Committee’s session. Observers expect that a separate procurement proposal for the FV-014 will be submitted to the Bundestag in the near future and will likely be subject to similar conditional oversight.

 

Delivery Timeline

The framework agreements have a term of seven years. Initial deliveries under the first €270 million tranche are scheduled to begin in early 2027, subject to the successful completion of acceptance trials and verification procedures.

 

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About the Author

Aditya Kumar is a Defense & Geopolitics Analyst covering military developments, missile systems, naval strategy, and global defense affairs.